Deck 15: Real Estate and Insurance Law

Question 1

Which of the following terms describes a clause registered on a title to land that prohibits the owner from constructing buildings of a certain nature?

A)restrictive title
B)restrictive covenant
C)indenture
D)easement
E)Prescription

Answer 1

B

Question 2

Will, Luke, and Katherine who are siblings purchased five acres of land as joint tenants in 1986. In 1990, Luke sold his interest to Troy with the consent of Will and Katherine. In 1994, Will died. Which of the following is TRUE?

A)Will's interest in the land is transferred to his spouse by reason of survivorship.
B)Will's interest in the land is transferred to Katherine by reason of survivorship.
C)Will's interest in the land is transferred to Luke and Katherine by reason of survivorship.
D)Will's interest in the land is transferred to Katherine and Troy by reason of survivorship.
E)Will's interest in the land is transferred to his estate by reason of survivorship.

Answer 2

A

Question 3

Olga owns a condominium and has two large dogs that bark constantly and she lets run wild in the garden and patio areas of the condo which disturbs the other residents. She also has two teenage boys who are very rude and obnoxious and play loud music on their deck and get drunk and wake up the other condo owners at night frequently. As a result which of the following statements is FALSE?

A)the other owners of the condominium can successfully sue her for nuisance but that is all they can do
B)the condominium corporation may be able to fine Olga for this behaviour
C)the condominium corporation may be able to force Olga to sell her condo
D)the condominium corporation may be able to get an injunction to stop this behaviour
E)the condominium corporation can do all of the above, but it cannot force her to sell the condo

Answer 3

E

Question 4

The owner of Landry Photography has a soft spot for Billy Benz, a young shoeshine boy, so she gives him permission to set up his stand on her property in front of the store. She begins to receive complaints that Billy is a little aggressive in soliciting customers, so she tells him he has to go. Billy refuses. Which of the following is TRUE?

A)Billy has a prescriptive right to his space and can't be moved by Landry.
B)There is no landlord-tenant relationship between Landry and Billy, so Landry cannot evict him.
C)Billy has an easement, giving him the right to remain where he is.
D)Landry gave Billy a licence to use the space for shining shoes. He's doing that, so he can't be asked to leave.
E)Landry can revoke the licence which it has given Billy to use its property.

Question 5

Alex Anastopolous bought a plot of land from the Crown and built a barn on it. Tired of farming, he rented the land to Matti Oonapuu. What is the legal name for the type of ownership Alex has?

A)fee simple
B)a life estate
C)tenancy in common
D)an intangible estate
E)a leasehold

Question 6

Timmy and June owned a house in a joint tenancy. Timmy died and in in his will, left his share of the property to his estranged wife Mavis. Mavis is insisting on moving into the property but June has objected to this. Which of the following statements most accurately describes the legal position?

A)Mavis is now a joint tenant of the property with June.
B)Mavis will not have an interest in the property until June dies.
C)Mavis cannot be legally excluded from the property as she is now a part owner of it.
D)Mavis has no ownership interest in the property.
E)Both A and C

Question 7

Samson bought a house from Kevin with a closing date of June 20 with the transfer (deed)dated for this same date. Unknown to Samson, two weeks earlier, Kevin had obtained a loan from a bank, using the house as collateral. Owing to an administrative oversight, the bank did not get the mortgage documents registered until 2 pm on June 20.Samson's lawyer submitted the transfer for registration at 3.30 pm on June 20. Samson doesn't know if he should complete the deal. Which one of the following statements most accurately describes the legal position?

A)Samson's interest would be subject to the bank's mortgage.
B)Since Samson was not aware of the mortgage, the mortgage is not enforceable against him.
C)The bank has a valid mortgage, but it would be subject to Samson's interest.
D)Samson's deed is dated before the mortgage so it has priority over the mortgage.
E)The mortgage is only enforceable as a simple debt against Kevin.

Question 8

Registration of a deed of land is important for which of the following reasons?

A)It establishes the priority of the documents registered.
B)It is deemed to be notice to the public.
C)It records the amount of the sale.
D)both A and B
E)both A and C

Question 9

Which of the following statements is FALSE? When purchasing a condominium a buyer should make sure they are aware of

A)the by-laws the condominium board has passed
B)the right of the condominium board to fine owners for certain behaviours
C)the contingency fund that the condominium board has set up for repairs
D)the number of other owners of condos who have very large mortgages on their units
E)the monthly maintenance fees and possible changes to the fees proposed for the future

Question 10

What is the importance of registering a deed?

A)Registration is required to prevent adverse possession
B)Registration is deemed to constitute notice to the public of the interest of the person registering.
C)If a deed is not registered, the land will be forfeited to the crown
D)Registration creates an estate in the land
E)All of the above

Question 11

Janet and Tom were married in 2000. At the time they were married Tom owned a house himself in Ottawa that was worth $300,000 and it had no mortgage. The couple moved into the house and lived together there until 2015 when they decided to divorce. At the time of the divorce the house was then worth $500,000. As a result which of the following statements is TRUE?

A)the house belongs to Tom and Janet has no claim on it
B)Janet is entitled to half of the increased value of the house which is $100,000
C)Janet is entitled to half of the value of the house which is $250,000
D)the only way Tom could have prevented Janet from having a claim on the house is if they had signed a marriage contract to limit her claim
E)both C and D are true

Question 12

Under the Registry system Peter and Marisa are neighbours. The only access to Marisa's property is through a lane running along the full length of Peter's property. Marisa has been using this lane to enter her property before Peter became the owner of the property. Which of the following is TRUE?

A)Marisa is a tenant at will.
B)Marisa has been given a licence by Peter to enter on his land
C)Marisa has acquired possessory rights over Peter's land
D)Peter's land is subject to a restrictive covenant in favour of Marisa
E)Marisa has an easement over Peter's property

Question 13

Which of the following interests in land approximates absolute ownership?

A)life estate
B)leasehold
C)estate in fee simple
D)condominium
E)none of the above

Question 14

Alex Anastopolous bought a plot of land from the Crown and built a barn on it. Tired of farming, he rented the land to Matti Oonapuu. What is the legal name for the interest Matti acquired in the land?

A)tenancy in common
B)joint tenancy
C)a leasehold estate
D)an easement
E)a reversion

Question 15

Fred Frick and Fran Frack own houses next to each other and share a mutual driveway. What is the name for the property interest each has over the other's property?

A)a licence
B)an easement
C)adverse possession
D)a restrictive covenant
E)a prêt a prendre

Question 16

George Burton owned two lots, A and B. Lot A he owned as tenants in common with his wife, Agnes, and Lot B they owned in joint tenancy. George signed an instrument allowing his son, Edward, to use Lot A for the rest of his (Edward's)life. George left his interest in Lot B to his other son, Cedric, in his will. Which of the following is TRUE?

A)Edward has a life estate and George and Agnes the remainder of the fee simple in Lot A.
B)If George dies before Agnes, Agnes will become the sole owner of Lot B.
C)If George dies before Agnes, Agnes and Cedric will become tenants in common of Lot B.
D)both A and B
E)both A and C

Question 17

Fred Frick and Fay Frack own houses next to each other and share a mutual driveway. Unfortunately, they hate each other. Fred leaves a garbage can on his side of the driveway, blocking Fay from getting in. Fay leaves her car parked on the driveway for long periods of time, blocking Fred from getting out. Which of the following is TRUE?

A)Fred has the right to deal with his side of the driveway as he pleases, since he owns it.
B)Fay has the right to park on her side of the driveway, since she owns it.
C)Fred and Fay have only a right of way, not an easement, so neither has a right to complain.
D)Neither Fred nor Fay has the right to interfere with the other's use of the driveway.
E)both A and B

Question 18

Which of the following would be included in a transfer of the ownership of land?

A)mineral rights
B)house built on the land
C)garage built on the land
D)the surface of the land
E)All of the above

Question 19

Nino Rota bought a house from Arthur Fiedler. There was a shed on the property, but it was not mentioned in the agreement of purchase and sale. When Nino closed the deal and moved in he saw that the shed structure had been removed by Arthur and only the foundation remained. Which of the following statements is TRUE?

A)Nino had a right to the shed because it is part of the land.
B)Nino had no right to the shed because it was not mentioned in the agreement of purchase and sale.
C)Nino had no right to the shed because it was removed from the transaction.
D)Nino had a right to the shed because its inclusion was an implied warranty of the agreement.
E)both B and C.

Question 20

Which of the following is a feature of condominium ownership?

A)The owner of each unit in the development also owns a share of the common elements
B)The right to possession of each unit in the development is shared between the owner and the condominium corporation
C)All owners are equally liable for any debts incurred by another owner with respect to the property
D)The condominium corporation must give consent for a unit to be rented
E)All of the above

Question 21

Shaffer's Ltd. leases a clothing store from Haimish Holdings Ltd. By the terms of the lease the landlord is to make repairs. The roof leaks but Haimish refuses to fix it. Which of the following can Shaffer's do?

A)withhold the rent until the landlord fixes the roof
B)have the roof fixed and deduct the cost from the next rent, but it must pay the balance
C)bring a court action to have the landlord do the repairs
D)immediately terminate the lease
E)none of the above

Question 22

With respect to a landlord's right to terminate a commercial lease, which of the following statements is TRUE? The landlord

A)has to give notice of failure to pay rent
B)does not have to give notice of failure to pay rent
C)has to give notice of a breach of lease
D)does not have to give notice of a breach of lease
E)Both B and C

Question 23

Pamela Lafontaine had a newsstand at the corner of Sixth and Main. She sold her property to a developer who was building a mall, and then leased space in the mall to run a newsstand. After about a year, Pamela's business began to deteriorate. She discovered that a large pharmacy in the mall was selling newspapers and magazines, although it was a term of its lease that it would only carry on the business of a pharmacy. Which of the following is TRUE?

A)Although Pamela does not have an exclusivity clause in her lease, it is only fair and just that the landlord would not allow one tenant to interfere with another tenant's ability to carry on its business.
B)Pamela can bring an action against the pharmacy for interference with economic relations.
C)The landlord may be able to stop the pharmacy from selling newspapers on the basis that it is in breach of its permitted use clause, but the pharmacy could argue this activity falls within its normal business.
D)In the absence of an exclusivity clause, Pamela likely has no recourse against the landlord.
E)both C and D

Question 24

What is the legal name for the process of taking the goods of a tenant is satisfy rent arrears?

A)re-entry
B)forfeiture
C)eviction
D)distress
E)seizure by bailiff

Question 25

Which of the following will NOT determine a person's credit worthiness to obtain a mortgage?

A)their current job
B)the size of their down payment
C)their past employment history
D)their previous borrowing history
E)all of the above determine credit worthiness

Question 26

Ludwig is a tenant of a commercial building. Contrary to the lease agreement, Ludwig has been storing hazardous chemicals in the building. On one occasion the chemicals ignited and started a small fire as a result of which the fire department had to be called. A report of the incident and the cause of the fire was sent to the landlord Colby Enterprises. Two weeks after Colby received the Fire Department's incident report, Ludwig paid his monthly rent to Colby and received a receipt for the payment. After discussion with its insurers, Colby served a notice on Ludwig to remedy the breach of the lease agreement. Ludwig failed to do it by the time allowed. With respect to the actions available to Colby at this stage, which of the following statements is TRUE?

A)Colby can increase Ludwig's rent as a penalty for his non-compliance
B)Colby can evict Ludwig from the premises
C)Colby can remove the hazardous chemical from the building itself and charge Ludwig for the cost of doing so.
D)A and C

Question 27

Which of the following statements is TRUE?

A)the promise to repay a mortgage is the covenant
B)the lender is the mortgagor and the borrower is the mortgagee
C)houses that are sold on a power of sale usually bring a price above market value
D)in a foreclosure if the lender sells the property the lender must return any money above the value of the mortgage to the borrower
E)a home owner cannot legally take more than three mortgages on one property

Question 28

Simon Liu is landlord of the location rented by Jones Ltd., which carries on business as a hardware store. Jones is in arrears of rent for 20 days in the sum of $1,000. The store inventory is worth $15,000. On the 21^st day Liu changes the locks and seizes the entire inventory. He sells it for $15,000, and pays the balance - after deducting $1,000 for rent and $500 for expenses - to Jones. Was this seizure lawful?

A)No, because Liu changed the locks and prevented Jones access to the premises.
B)No, because Liu seized an excessive amount in relation to the rent due.
C)Yes, because there were rent arrears and more than 15 days had passed.
D)Yes, because Liu sold the goods for the best price and his expenses were not excessive.
E)both A and B

Question 29

Which of the following statements is TRUE?

A)By law, tenants generally are responsible for repairs to commercial premises.
B)By law, landlords generally are responsible for repairs to commercial premises.
C)By law, tenants are only responsible for repairs of deterioration caused by reasonable wear and tear.
D)By law, tenants are only responsible for repairs when the premises become unusable.
E)both B and C

Question 30

Which of the following is a criteria for a tenant being able to obtain relief from forfeiture against the landlord's action of terminating the lease for non payment of rent?

A)The tenant must pay all outstanding rent
B)The tenant must pay all outstanding rent, and obtain indemnity insurance in favour of the landlord.
C)The tenant must obtain a certificate of good credit rating.
D)The tenant must pay all outstanding rent, and post a bond as security against future breaches of the lease.
E)The tenant must enter into a new contract at increased rent with the landlord.

Question 31

When a property has more than one mortgage, the priority of those mortgages will be determined by which of the following?

A)the date each mortgage document was signed
B)the mortgage with the higher principal amount comes first
C)the date each mortgage was registered
D)the type of mortgage that has been given, conventional mortgages taking priority over vendor take-back mortgages and the like
E)the date each mortgage was notarized

Question 32

Ava Handel rents a store for her business from John Taylor without a written lease. The window breaks during a cold snap. Which of the following is TRUE?

A)Taylor has the obligation to repair the window.
B)Handel has the obligation to repair the window.
C)The landlord usually has the obligation to repair, but this damage is normal wear and tear, so Handel must repair it.
D)This would be considered a structural repair, so Taylor is responsible.
E)A cold snap is in the same category as fire and hurricane, so Taylor is responsible for the repair.

Question 33

Brady West signed a lease with Harold Gomes for a store. The lease contained a term that the tenant would make all repairs. On the first of the month Gomes noticed a leak and gave written notice to Brady in these terms: "You are hereby notified that you are in breach of the lease." One month went by and Brady had not repaired the roof. Gomes wants to evict her. Which of the following is TRUE?

A)The landlord can evict Brady because she has had reasonable notice of the breach of the lease.
B)The landlord can evict Brady because she specifically agreed in the lease to repair the damage and has not done so.
C)The landlord cannot evict Brady because the notice of the breach of the lease was not specific enough.
D)The landlord cannot evict Brady because she has not been given a reasonable time to remedy the breach.
E)both A and B

Question 34

Which of the following statements is true with respect to the land titles system in Canada?

A)the order of registration determines the order of priority of interests in land
B)title has to be searched back 40 years
C)the government guarantees the person shown on the register as owner is the owner
D)A and C
E)All of the above are true

Question 35

In which of the following circumstances can a landlord evict a commercial tenant for failure to pay rent?

A)Where the rent is due and remains unpaid for 30 days or more
B)Where the rent is due and remains unpaid for 60 days or more
C)Where within a six month period, the tenant has failed to pay the time on at least three (3)occasions
D)Where the rent is due and remains unpaid for 15 days or more
E)Where there has been a persistent failure by the tenant to pay the rent on time

Question 36

Which of the following formalities must a landlord observe before being able to evict a tenant for non-payment of rent?

A)allow the tenant a one-month grace period
B)serve a final demand on the tenant for the outstanding rent
C)give oral notice to the tenant
D)give notice in writing to tenant
E)None of the above

Question 37

With respect to a landlord evicting a commercial tenant for breach of a term of the lease other than one involving rent which of the following statements is TRUE?

A)The landlord must give notice of a breach to the tenant
B)The notice of the breach given to the tenant must be accurate in every detail
C)The tenant must be permitted a reasonable period of time to remedy the breach
D)A and C
E)All of the above

Question 38

Arthur Ross leases a commercial premise. He does not pay his rent when due on the first of the month. On the 16^th, the landlord changes the locks and evicts him. Which of the following is TRUE?

A)The eviction is improper because the landlord did not give notice of the eviction.
B)The eviction is improper because it can only be done one month after the rent is due.
C)The eviction is proper as it can be done any time without notice for non-payment of rent.
D)The eviction is proper as it was done more than 15 days after non-payment of rent.
E)The eviction is improper as a court must first rule that Ross can be evicted before the locks can be changed.

Question 39

Priscilla Han signs a mortgage document to mortgage her house to Pascal Wong. Pascal does not register it. Priscilla then sells the property to Danny Kwon who does not know of the mortgage and who registers the deed. Which of the following statements is TRUE?

A)The mortgage is enforceable against Danny because Priscilla signed it when she owned the property.
B)The mortgage is enforceable against Danny because it is in writing.
C)The mortgage is not enforceable against Danny because it was not registered.
D)The mortgage is enforceable because mortgage rights cannot be extinguished except by fraud.
E)both A and B

Question 40

Harry Heinz operated a small barber shop on leased premises for many years. When he was out one day, his new assistant, Jimmy Griffiths, sold a few bags of marijuana. Jimmy was arrested. The landlord found out, was furious, and gave Harry notice that he was terminating the lease because of "illegality". Harry does not want to leave. Which of the following is TRUE?

A)Harry may be able to contest the eviction on the basis that the notice was not sufficiently detailed.
B)Harry may contest the eviction on the basis that he was not given an opportunity to remedy the breach.
C)Generally, illegality is a breach not capable of remedy.
D)The court has an overriding discretion to relieve from forfeiture.
E)A,C and D

Question 41

Which of the following statements is TRUE?

A)An insurable interest is a requirement of a policy of insurance.
B)Anyone can purchase a policy of life insurance on another person.
C)Only the owner of property may insure that property for loss.
D)Both A and B
E)All of the above

Question 42

Which of the following statements is FALSE?

A)Insurance is a branch of contract law.
B)If you contract with a company to pay you in the event of a loss, you are the insured.
C)An insurer pays a premium for coverage under an insurance policy.
D)Some forms of insurance are compulsory.
E)All of the above are true.

Question 43

Metro Finance Co. lends $100,000 to Joe Simms with a mortgage on his house as security. Simms defaults. Which of the following remedies, if any, does Metro Finance NOT have available to it?

A)sue on the covenant
B)apply for sale of the property under judicial supervision
C)apply for court order foreclosing Simm's interest in the property
D)take possession of the property
E)It can do any of the above.

Question 44

Which of the following statements respecting claims, if any, is TRUE?

A)The insured, pursuant to the policy, usually must give immediate notice of a claim to the insurer.
B)The limitation period in which to bring an action on a contract of insurance is two years and that cannot be shortened by terms of the policy
C)If an injured party has property insurance and gets paid in full, they cannot sue the person who caused the damage as that would be double recovery
D)An insured may be awarded punitive damages if an insurer deals with a claim in bad faith
E)Both A and D

Question 45

A mortgage fraud scheme where new immigrants are paid and tricked into signing large mortgages on a property which they are told they will not be responsible for is called a(n)

A)Ponzi scheme
B)Texas Two-step
C)Connecticut Con
D)Oklahoma Flip
E)Refugee Rip-off

Question 46

William Aitchison had a first mortgage on his house of $300,000 with Bank A, a second mortgage of $200,000 with Bank B, and a third mortgage of $100,000 with Bank C. All of these mortgages were registered and in that order. Arthur missed his mortgage payments to Bank C. Which of the following statements is TRUE?

A)No bank alone can force the sale of the house
B)If the house is sold, Bank A must be paid in full before any other bank receives any money
C)If Bank C forces the sale of the house, Bank C will get its $100,000 before any other bank receives any money
D)If the house is sold Bank A will get 50% of the proceeds of the sale
E)If the house is sold Bank C will get 33% of the proceeds of the sale

Question 47

Which of the following statements is TRUE?

A)an insurance agent is the sales rep for an insurance company
B)an insurance broker is an agent for the insurance company
C)an insurance broker is an agent for the insurer
D)a premium is paid by the broker for the insured
E)A and C

Question 48

You own a small grocery store. You are aware that customers occasionally slip and fall in grocery stores and sue for their injuries. What sort of insurance should you get to protect yourself from this?

A)Errors and omission.
B)Professional liability
C)Product liability
D)Public liability
E)Vicarious liability

Question 49

James Fitzpatrick owns a factory in an industrial park. There are five other businesses in the park, some larger than his, some smaller, some in older buildings, some newer. James is a friend of the owners of each of these businesses. He thinks that if they pool together, they can self-insure the risk of loss to any of them at a cost that is less than they are currently paying for insurance. Which of the following statements is TRUE?

A)James's plan will have to include a mechanism for deciding how much each participant pays to cover a loss.
B)James's plan will have to include a mechanism for determining whether a claim is valid.
C)James's plan is contrary to law because it would place him in a conflict of interest.
D)It is illegal for different businesses to self -insure as they all have different risks
E)Both A and B

Question 50

Jan Whitney had a first mortgage on her house of $200,000 with Bank A, a second mortgage of $100,000 with Bank B, and a third mortgage of $100,000 with Bank C. All of these mortgages were registered and in that order. Jan missed her mortgage payments to Bank B. If Bank B forces the sale of the house and the house sells for $250,000 which of the following statements is TRUE?

A)Bank A gets $200,000
B)Bank B gets $100,000
C)Bank C gets $50,000
D)Bank A gets $250,000
E)Bank A gets $125,000 and Banks B and C share $125,00

Question 51

Which of the following is the most common remedy that a lender will use if the mortgage on a home is not paid?

A)judicial sale
B)power of sale
C)foreclosure
D)sue on the covenant
E)evict the borrower, take possession of the property and using it as a rental property

Question 52

Metro Finance Co. lent $300,000 to Jeff Sahara with a mortgage on his condo as security. Sahara defaulted, owing $270,000. The fair market value of the condo was then $250,000. Which of the following, if any, is TRUE?

A)If Metro exercises its power of sale under the mortgage, assuming Metro obtained $250,000, it could sue Sahara for the deficiency
B)If Metro exercises its power of sale under the mortgage, assuming Metro obtained $250,000, it could not sue Sahara for the deficiency
C)If Metro forecloses on the mortgage and the house sells for more than the amount owing, it can keep the excess
D)If Metro forecloses on the mortgage and the house sells for less than the amount owing, it cannot sue for the unpaid amount
E)A, C and D

Question 53

Wally Kramer, Saskatchewan farmer, wished to buy an additional 160 acres, but didn't have the money. He borrowed it from his uncle Chester and gave Chester a mortgage on the addition. Chester didn't have legal advice and neglected to register the mortgage. Wally found the mortgage payments too much for him, so he sold the new land to his neighbour, Phil Hazel. Phil registered the deed. Can Chester now enforce the mortgage against Phil?

A)Yes, a mortgage runs with the land.
B)Yes, the mortgage was in writing and dated before the deed
C)No, Chester's mortgage was not registered
D)Yes, Phil had constructive notice of the mortgage.
E)both A and B

Question 54

James buys a junk property for $200,000 and then re-sells it repeatedly in false sales transactions to other corporations that he owns for greatly inflated values until the last price is listed as $1,200,000. James then gets a large mortgage on the property of $1,000,000. James transfers $900,000 of this money to a foreign bank account and then stops making the mortgage payments soon after. This is an example of a mortgage fraud known as a(n)

A)Texas Two-step
B)Ponzi Scheme
C)Oklahoma Flip
D)Triple Take
E)Mortgage Maze

Question 55

Eloise Ralston had a first mortgage on her house of $300,000 with Bank A, a second mortgage of $200,000 with Bank B, and a third mortgage of $100,000 with Bank C. All of these mortgages were registered and in that order. Eloise missed her mortgage payments to Bank C. If Bank C forces the sale of the house and the house sells for $400,000 which of the following statements is FALSE?

A)Bank A will get $300,000
B)Bank B will get $100,000
C)Bank C will get $100,000
D)Bank B will not get fully paid but it will get some money
E)Bank C will get $0

Question 56

You obtained a comprehensive general liability policy in respect of your business. The term of the policy is one year. It included coverage of $2,000,000 on the building in the event that it is destroyed by fire, etc. Six months later, you had an extension added to the building, and you wish to increase your coverage. Which of the following is TRUE?
A)You should have a rider added to the policy.

A)You should have an endorsement added to the policy
B)You will have to obtain a brand new policy.
C)You cannot obtain additional coverage until your policy expires.
D)Both A and B

Question 57

Which of the following statements is TRUE?

A)Insurance shifts the risk of loss from an insured person to the insurer.
B)Insurance distributes the costs of accidents from individuals to large groups.
C)An insurer's profits are derived from the accuracy of its predictions of the frequency and costs of accidents and other insured events.
D)Both A and B
E)All of the above

Question 58

Which of the following statements is FALSE?

A)mortgage fraud is a widespread problem in Canada
B)the Land Titles system has helped reduce mortgage fraud in Canada
C)mortgage fraud is possible because of the ease of getting fraudulent documents to back up a mortgage application
D)lenders often do not do proper investigations on the borrower's background when giving mortgages
E)many people take out title insurance to protect against fraud

Question 59

Franco Rossini applies for a comprehensive insurance policy for his business premises. He neglects to mention that he made a claim for loss on his previous policy, which was with a different insurer. The policy is issued, and four months later there is a fire on the premises. When Franco makes a claim, the insurer refuses to pay. Which of the following is TRUE?

A)An applicant for insurance has a duty to reveal any important matters that might affect the assessment of the risk.
B)Since Franco was not specifically asked whether he had any prior claims, he did not breach his duty to disclose, and the insurer must pay.
C)The duty to disclose risk factors on an application for insurance tends to be strictly enforced.
D)Since the fact that Franco had a prior claim would not materially affect the insurer's assessment of risk, he did not breach his duty to disclose, and the insurer must pay.
E)Both A and C

Question 60

You are applying for a life insurance policy. Which of the following are you obliged to disclose even if not asked on the application for?

A)That you have heart disease.
B)That you were previously turned down by another insurance company
C)That one of your hobbies is sky diving
D)Both A and C
E)All of the above

Question 61

A spouse cannot have an unregistered interest in land.

Question 62

When land is held in a tenancy in common, one owner can dispose of his or her share of the property by their will.

Question 63

An easement is a right that one landowner has over land belonging to another

Question 64

Which of the following does not belong in this group?

A)Exclusions
B)Deductible
C)Penalty
D)Premium
E)Coverage

Question 65

Rhonda and Peter own property in a joint tenancy, if Peter dies, Rhonda then owns the entire property.

Question 66

The common elements in a condominium are owned as tenants in common.

Question 67

As the owner of the land, a landlord of property can always occupy the land at any time.

Question 68

Jackie bought a house and on the seller's property information sheet (SPIS)it stated the house was in good shape with no structural problems. Jackie bought title insurance. After Jackie moved in she discovered there were major structural problems and it cost her $150,000 to repair it. Jackie successfully filed a claim under her title insurance policy and got $135,000 from this title insurer. Jackie also plans to sue the vendor for negligence and recover at least $150,000 as well. This

A)cannot happen as she cannot get double recovery of her losses
B)can happen but Jackie will then have to return the $135,000 to the title insurance company
C)cannot happen as only the title insurance company can sue the vendor because it has already paid Jackie
D)cannot happen as only the vendor's real estate agent would be liable
E)can occur and Jackie can recover money from both the title insurance company and the vendor

Question 69

A tenant can lawfully withhold rent as compensation for a landlord's breach of a term of the lease.

Question 70

The management of Wallpaper International Limited is concerned about losses that have been occurring as result of theft and other acts of dishonesty committed by employees. To protect itself against this type or risk, which of the following types of insurance should the management be advised to get?

A)Professional liability insurance
B)Business interruption insurance
C)Fidelity insurance
D)Credit insurance
E)None of the above

Question 71

The exercise by a landlord of the remedy of distress effectively terminates the tenancy.

Question 72

Timothy, who lives alone, has a comprehensive general liability home insurance policy with the Great Pacific insurance company. He is planning to travel the world for a year and leave his home locked up while he is away. Which of the following should Timothy do?

A)Tell the insurance company of his plans to leave the house vacant as doing this constitutes a change in the risk.
B)Tell the insurance company of his plans because if he does not it will breach the fiduciary duty he owes the insurance company
C)Give the insurance company of a forwarding address in case it needs to contact him
D)Tell the insurance company so he can get a major reduction in his rates.
E)He does not have to tell the insurance company as he still owns the property and he is free to travel.

Question 73

In addition to evicting a tenant for non-payment of rent, a landlord can at the same time seize and sell the tenant's goods.

Question 74

What is another name for "professional liability insurance?"

A)product liability insurance
B)business interruption insurance
C)errors and omissions insurance
D)fidelity insurance
E)public liability insurance

Question 75

Successive purchasers of land will not be bound by a restrictive covenant endorsed on the title.

Question 76

A landlord cannot evict a commercial tenant for failure to pay rent without a court order.

Question 77

Lu has just been called to the bar of British Columbia. She wishes to establish her own legal practice but is concerned about the possibility that she will have to pay a lot of money as compensation to clients if her negligence causes them loss. Which of the following types of insurance should Lu be advised to obtain?

A)Errors and Omissions Insurance
B)Fidelity insurance
C)Product Liability Insurance
D)None of the above
E)All of the above

Question 78

A landlord can seize (distrain)a tenant's goods for nonpayment of rent

Question 79

Jane is the owner of a hair salon in a strip mall. Lucy is the owner of the shop next door to Jane and is concerned that owing to all the chemicals handled by Jane in her business, her salon could be damaged by fire. Lucy encourages Jane to take out a contact of insurance to protect her business but when Jane showed no inclination to do so, Lucy herself tried insure Jane's building. Can Lucy do this?

A)Yes, because Lucy's business could be destroyed if a fire started on Jane's premises.
B)No, because Lucy has no insurable interest in Jane's premises
C)Yes, because under the principle of good neighborliness, the law allows one neighbour to insure the property of another.
D)Yes because anyone can take out insurance on anything they wish.
E)Only if she can prove that Jane is being negligent in not getting the insurance herself.

Question 80

Which of the following statements best describes the result when an insured under a policy of life insurance has not disclosed to the insurer that he is an avid bungee jumper?

A)The insured has breached his fiduciary duty to the insurance company
B)The insured has not breached any duty owed to the insurance company as bungee jumping is legal.
C)The insured has breached the duty of utmost good faith owed to the insurer.
D)The insurer can claim punitive damages against the insured for the non-disclosure.
E)The insurer has accepted the undisclosed risk by virtue of its failure to ask the question.